What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) jumped 5.8% in the morning session after TD Cowen upgraded the stock to Buy from Hold. The firm also increased its price target on the solar technology company to $38 from $34.
The upgrade was based on the view that SolarEdge was executing its turnaround plan with the launch of new products, which were believed to be supporting profit margins and market share gains. For example, the company's new commercial storage system saw strong initial demand in Germany, with over 150 orders shortly after its launch. Other analysts also viewed the company more favorably, as Morgan Stanley upgraded the stock's rating to Equalweight from Underweight, while Jefferies raised its price target.
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What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 83 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock dropped 3.5% on the news that major indices pulled back from record highs reached the previous week. The S&P 500 and Nasdaq were under pressure as the dominant artificial intelligence trade cooled off. Notable names like Nvidia were down as traders locked in profits following a banner year where the Nasdaq surged over 20%. With the S&P 500 recently hitting intraday highs near 6,945, this dip reflected a shift in internal momentum rather than a response to major economic news.
SolarEdge is up 1.3% since the beginning of the year, but at $31.78 per share, it is still trading 30% below its 52-week high of $45.38 from November 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $90.27.
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